Purpose – The presence of fair trade coffee in cafe´s may help in strategic positioning and market differentiation. This paper aims to explore the extent
to which this is evident for cafe´ customers.
Design/methodology/approach – Customers were surveyed on their perceptions of cafe´ and coffee attributes including taste, price and store
atmosphere. Respondents were analysed by knowledge of the concept of fair trade, and by frequency and place of purchase.
Findings – The study finds that nearly half of respondents claimed moderate self-assessed knowledge, although objective knowledge was lower. More
knowledgeable customers cared more for fair trade products and for cafe´ atmosphere, of which fair trade promotional material plays a part. Customers
stated they expected to pay more for fair trade coffee, although on average not as much as current margins require. When exposed to more information
about fair trade, stated price premium support increased, but coffee taste expectations worsened.
Practical implications – Promoting fair trade coffee can help distinguish and position cafe´s, but not as much as was expected. Customer beliefs about
the provision of fair trade products appear to have a stronger influence on their choices than actuality.
Originality/value – The paper contributes to understanding customer motives for purchasing fair trade coffee, particularly in the context of cafe´s/
coffee houses, and for their patronage